A common phenomenon often overlooked in trading is that losses and breakeven points are not symmetrical at all. The more you fall, the exponentially harder it becomes to recover.

Let's look at the data. Stop-loss within -20% offers the highest cost-performance ratio. Once it drops to -30%, you need a 43% increase to break even. The deeper the decline, the higher the rebound percentage required. This is no longer just a matter of effort; mathematics itself is not on your side.

Here's a more intuitive comparison. Suppose you have 1 million in your account, compare two paths:

Path A: Stable compound interest of 5% per year, for 3 years
Path B: +50% in the first year, +50% in the second year, -50% in the third year

B looks more aggressive and exciting, but calculations show that A actually earns more in the end. This demonstrates the power of stability.

What truly widens the gap between investors is not how high their single-trade gains are, but who can avoid one or two fatal large drawdowns. A major loss may require years of stable profits to recover. That’s why risk management always ranks first — it directly determines your final outcome.